Does being the most liveable city in the world mean anything?

EIU's ten "most liveable" cities in the world (scores out of 100)

The good thing about ‘winning’ the World’s Most Liveable City gong is that it might help market Melbourne to overseas tourists, students, investors and maybe even buyers of our services. Unlike the Grand Prix, it costs us nothing. And while it won’t stop some Melburnians from pissing in trains (like this guy in case you missed him in yesterday’s post), it might give many others greater pride in their city. The thousands of Melburnians who travel overseas for business or pleasure each year can now be ambassadors for their city with this neat and handy marketing tool.

But of course league tables like The Economist Intelligence Unit’s (EIU) annual Liveability Survey are all bunkum and sensible people shouldn’t be sucked in. The EIU’s Survey purportedly provides an objective ranking of world cities based on 58 variables measuring dimensions like political stability, health care, environment, culture, education and infrastructure. However, as I’ve explained before (here, here and here), there are a number of reasons why liveability league tables are best left to the marketeers.

The EIU’s Survey is designed primarily to assist companies with formulating appropriate living allowances for staff posted to overseas cities. These people are transitory and well-heeled – they don’t experience the city like the average permanent resident. They usually rent somewhere convenient and salubrious, so they won’t care too much about high housing prices and inadequacies in outer suburban public transport.

There are also difficult methodological problems involved in arriving at a single summary ranking of a city’s “liveability”. These sorts of surveys typically have lots of variables – some are easy to measure, others are very subjective. The analysts often make the convenient but unrealistic assumption that they’re all of equal value (weight). Not all of them can be ‘added’ together in any meaningful sense, yet they have to be to arrive at a simple league table.

The differences between top cities in these sorts of surveys are in any event miniscule and hence of little consequence. For example, the top five ranked cities in the EIU’s survey all scored 97 points out of 100 (see exhibit) – this would be swamped by the margin of error in the estimates. The EIU acknowledges that “some 63 cities (down to Santiago in Chile) are considered to be in the very top tier of liveability, where few problems are encountered…. Melbourne in first place and Santiago in 63rd place (can) both lay claim to being on an equal footing in terms of presenting few, if any, challenges to residents’ lifestyles”.

Defining “liveability” is itself a difficult challenge (I’ve discussed this before in the context of the ‘Sydney vs Melbourne’ debate – see here and here). The EIU finds the concept so slippery it comes up with this tautology: “The concept of liveability is simple: it assesses which locations around the world provide the best or the worst living conditions”. Arriving at a consensus definition is extremely hard because it depends on a number of factors, like the characteristics of the observer – for example, their ethnicity, their income, their stage in the life cycle and so on. The vibrant centre of Melbourne might add nothing to the city’s liveability for someone who’s elderly, or on a low income, or a member of a cultural group that is under-represented in the city.

It’s not surprising the EIU’s top ten cities seem to be all of a one. They’re all medium sized cities (no megalopolises here), they’re practically all low to middling density, they’re all in first world countries and, with the possible exception of Sydney, they all have cool to cold climates. What seems obvious is that the ranking is shaped much more by the characteristics of the host country than anything else. Factors like political stability, health and education – which loom large in the selection calculus – are pretty much the same whether you’re in Melbourne, Sydney, Perth, Adelaide or Auckland.

I would be more inclined to focus on the attractiveness of a city and measure how sought after it is (perhaps by looking at the difference between wages and housing costs). It’s instructive, I think, that few of the cities in the EIU’s top ten are the sorts of places young people around the world seem to aspire to live in. Let’s be realistic, Australian cities don’t have quite the drawing power of places like London, New York, Los Angeles, San Francisco and Paris.

The slightly different methodology used by the rival Mercer Quality of Living Survey ranks Sydney 10th and Melbourne 18th. This is a big drop in ranking for Melbourne compared to the EIU Survey, but again the difference in ranking is far larger than the difference in absolute scores, which is small. Read the rest of this entry »


What to do about fare evasion?

% journeys where fare is evaded (Metlink data)

Metlink released its Metropolitan Fare Evasion Survey on the weekend, which apparently shows 13.5% of trips on public transport in Melbourne in the first half of 2011 weren’t paid for.

The figure for trams, where it’s easier to avoid paying, was much higher – The Age’s headline was One in five evading fares on trams (see exhibit).

Metlink’s disappointed me before with its slipshod approach to customer focus and they’ve done it again this time. The survey was released to the media, but not to public transport users, so we can’t read it (in fact the most recent media release available on Metlink’s web site as of today is 17 August!).

However fortunately The Age has cited some of the findings in this indignant editorial, Fare dodgers owe us all big time. I also stumbled across Metlink’s Network revenue protection plan 2010 which was released under FOI and made available publicly by The Age (I do like it when media use the power of the digital world to supply supporting documentation online).

Metlink’s Network Revenue Protection report provides some interesting findings based on focus group research. I found it surprising only a small proportion of travellers actually always pay the fare  – most people have not paid the fare at some time and some don’t pay frequently. The sorts of explanations offered are “because I didn’t have any change” or “because I could get away with it”.

Worryingly, the report argues that “fare evasion is seen as normative behaviour shared by the majority of the population”. Prevalent public attitudes are:

  • Even people who admit to occasional fare evasion do not see themselves as ‘fare evaders’ i.e.they don’t see what they do as wrong
  • Fare evasion is seen as socially acceptable i.e. it is perceived that everyone does it
  • Opportunistic or inadvertent fare evasion leads to more systematic fare evasion as people learn how to ‘get away with it’
  • Some customers are unwilling to pay for what they perceive as poor service delivery
  • The existing ticketing system is perceived as letting passengers down – it’s too confusing, too hard to use, etc
  • Poor value for money – despite the value provided by ‘bulk’ tickets, Melburnians are more likely than users in other Australian cities to consider public transport expensive
  • Some customers like the idea of  ‘playing the game’ and actively take on the system.

Many comments on The Age’s news report support this conclusion. Not paying fares is variously justified by difficulties with buying or validating tickets, inadequate information about ticketing requirements, poor quality of service, and expensive prices. Some suggest conductors should be restored to trams and some, with imaginative logic, say making public transport free would put paid to the problem of fare evasion (pun not intended).

Trams present a particular difficulty for protecting revenue because they’re relatively “open”. It isn’t practical to have barriers at city stops like there are at loop rail stations. Even with the best of intentions, ticket purchase and validation can be difficult on a crowded tram. Chronic evaders can “hover” near a validation point and only use it if an inspector comes aboard.

Whatever measures are adopted to increase fare compliance, there are limits. There’s always going to be a trade-off between minimising non-compliance, maintaining an attractive experience for bona fide travellers, and keeping costs within sensible bounds – this is public transport, so there’s a political constraint as well. Some lost revenue is inevitable: almost all retail businesses tolerate some degree of freeloading because beyond a certain point the cost relative to the saving in foregone revenue is too high. Read the rest of this entry »


Malls & strips: what’s the difference?

(Image from Fleskw - via The Conversation)

Whether you like them or not, malls have been pretty successful in capturing a sizeable share of the retail dollar in Australia since the first ones opened in 1957 at Chermside in Brisbane and Top Ryde in Sydney (Chadstone opened in Melbourne in 1960). Much of that success historically came at the expense of strip shopping centres, so it’s worth unpicking what it is about malls that attracts shoppers.

Both retail forms have their advantages and disadvantages from a consumer’s and an urbanist’s point of view. A week ago I took a general look at malls (What’s so bad about malls?) but what I want to look at here is a singular advantage that regional malls have over regional strip shopping centres: unified management. In one sense that’s a trite observation – it’s hard to imagine that a collection of small businesses could’ve gotten together in the 1950s to build collectively something as large as suburban Chadstone in Melbourne, currently Australia’s largest mall.

The Myer Emporium, however, had no such coordination problems. It was able to ignore the objective of the MMBW’s 1954 Melbourne and Metropolitan Planning Scheme to confine development to activity centres served by public transport. Ken Myer constructed instead a massive new retail centre on a Malvern orchard, well away from the nearest rail station.

Let me be clear that this is not a post about which is ‘better or ‘worse’ – it’s about understanding the differences between malls and strips and, in particular, why they’re different. I’ve chosen to look at management arrangements because I think that’s a key difference and space is limited, but it’s not the only one. I’ll try and look at other differences another time.

The real power of the management advantage enjoyed by malls is in operations. A stand-alone regional mall like Chadstone or Northland has a single landlord and manager who coordinates a wide range of key commercial variables, from infrastructure to the overall retail offer of the mall.

I think of malls as being a bit like clubs. The welfare of each retailer depends not only on his own performance but on that of all the others — they generate business for each other. That’s true of strips too, but in malls the tenants formally cede a considerable measure of independence to the centre manager in return for maximising the benefits of the mutual inter-dependency of the parties. The manager’s role is to maximise the benefit for all tenants and, consequently, for herself. If she doesn’t also satisfy shoppers then both she and the retailers will suffer.

One of the most important qualities of any regional centre for shoppers, whether it’s a mall or a large strip centre, is the range and choice of products and services on offer. The mall’s advantage is it is ‘designed’ or ‘engineered’ to maximise the retail experience.  Managers are able to optimise a range of critical variables important to customers, like the mix of shops/tenants, the mix of merchandise value, and the mix of floorspace allocated to different retail segments. Considerable research effort is devoted to the subtleties and nuances of what sells and what doesn’t.

The centre manager can create a unified marketing image. She can also engineer a defined ‘experience’ or ‘atmosphere’ comprised of the retail offer, associated services like cinema, and the design of the physical environment. She can control the level and management of car parking, often providing it for ‘free’. Moreover she can provide simple things like clean, safe and working public toilets; tenant directories; staffed centre management offices; and security services.

The management advantage also extends to the quality of staff. Malls are largely populated by national franchises that can afford to put effort into choosing and training staff and supporting them with sophisticated management systems, inventory control and procedures manuals.

All of these activities are much more difficult for a strip shopping centre. Strips are composed of multiple landlords and multiple tenants. Individuals within each of these groups may have different priorities. Further, circulation and parking spaces are administered by a range of public agencies, such as local government and traffic authorities. In many centres there are residential and other non-retail occupants in the centre with agendas which might be inconsistent with the priorities of businesses and organisations that serve the public directly.

This diversity of purpose makes it more difficult to get any sort of sustained, unified action. Publicly funded programs like Mainstreet have endeavoured to create some semblance of joint action by retailers and other players but the results have been small scale, short-lived and largely confined to ‘beautification’ projects. Even where they work, they seldom go to the core commercial issues. Read the rest of this entry »


Are our trains going down the toilet?

There’s a theory that women are an “indicator species” of how bike-friendly a city is. According to Deakin University’s Jan Garrard, “if you want to know if an urban environment supports cycling, you can forget about all the detailed ‘bikeability indexes’ — just measure the proportion of cyclists who are female”.

I reckon you can say much the same thing about public toilets and public transport. Good public transport systems have good toilets because good managers focus on the welfare of users. Maybe users who are given a good system take better care of it.

The idea that a major urban node like a rail station doesn’t have toilets for its thousands of daily users is simply appalling. We wouldn’t tolerate their absence in other public places like a school, a stadium or a mall.

What’s more basic than a call of nature? If you’re travelling by train and you’ve got infants that need to be changed, or pre-teens that have difficulty planning ahead, or you’re pregnant, or you’ve been on the turps, or you’ve got an aging bladder, or you or someone in your care is feeling sick, then having access to a toilet is a fundamental human necessity.

Even in Manhattan, one of the world’s great public transport oriented cities, a busy interchange station like Union Square, with tens of thousands of people passing through each day, does not have toilets accessible to the public. Dense nodes of human activity are the very places that should have toilets!

Fortunately we have toilets at major CBD stations in Melbourne, but most suburban stations don’t. According to Greens MP, Greg Barber, two thirds of stations in Melbourne do not have toilets for public use. Even some premium stations don’t open the toilets at all times, even when staffed. Mr Barber says there are 40 stations with more than 5,000 patrons per day that don’t have public toilets.

For example, Box Hill is the tenth busiest rail station in Melbourne with circa 10,400 users per day on average, however according to Wiki:

Despite being a Premium station, there are no public toilets within the station complex. Toilets for station patrons were originally located out in Main Street Mall, however, they have been closed permanently due to vandalism. Station patrons must now use the toilets provided by the adjoining shopping centre, which are only open during trading hours.

Lack of privacy is a disadvantage of public transport relative to the car, so managers should be working hard to minimise passengers’ fear they might be put in an embarrassing position. Passengers shouldn’t have to plan their travel around the risk of needing unscheduled toilet stops.

Why are there so few public toilets at rail stations? The former Minister for Transport in the Brumby Government said toilets at stations weren’t open “for good reasons: first of all for issues of security, and for issues of cleanliness, and the like”. I acknowledge it costs money to clean graffiti and repair vandalised fittings. It probably costs much more to keep toilets clean (and were toilets opened at stations I expect users would demand a high and costly standard of maintenance). But I reckon that’s just one of those base line costs, like safety, that just have to be  accepted – it’s the price of simply being in the business.

The excuse I find really odious is that toilets should be closed to prevent druggies using them. That’s really cutting off your nose to spite your face. There are other strategies for managing this problem – the Government’s promised PSOs should help – but even if toilets are used by junkies, they should nevertheless be kept open and kept in good order so ordinary passengers aren’t punished when in extremis. Travellers will doubtless avoid using toilets frequented by addicts, but they need to know they’re there when nature calls urgently and unexpectedly. Read the rest of this entry »


Are Melbourne’s trains really this bad?

Hurstbridge line, yesterday

The amazing thing about this footage is that it was filmed only yesterday at Montmorency on the Hurstbridge rail line. The truly shocking thing is apparently this section of track was upgraded to concrete sleepers last year.

It was uploaded to Youtube by Rocketboy 1950, who says:

I shot this footage on the Hurstbridge line at Montmorency. It is testament to how safe trains are and how they will handle extraordinarily bad track without going arse over head. This is of course not to say that some of the passengers will be going to see a chiropractor or orthopedic surgeon to have their backs put right after riding the trains through here.

Expertly placed on a curve.

Update: Channel 7 now on to this and ran this story on Friday evening news.


New book giveaway: ‘When we think about Melbourne’ by Jenny Sinclair

Detail from cover of 'When we think about Melbourne'

Affirm Press has kindly supplied two copies of Jenny Sinclair’s beautiful book, When we think about Melbourne, to give away to readers of The Melbourne Urbanist.

To be in the running to get a copy, all you have to do is say which shopping/activity centre in Melbourne you think is the best. Follow this link to enteror go to the Pages menu in the sidebar (don’t enter on this page). Entries close midday Saturday, 3 September 2011. One entry only per person.

As usual the quality of your nomination has absolutely no bearing whatsoever on whether or not you’ll win a copy of the book. The winner will be determined at random. However, a little explanation is encouraged. If you’re stuck, “the Bourke Street mall”, is acceptable.

If you’re one of the winners, you’ll have to provide Affirm Press with an Australian address they can post the book to (I won’t know who you are or where you live).

Here’s how Readings describes When we think about Melbourne:

Considering most Melburnians remain as steadfastly loyal to their city as they do their chosen AFL team, Jenny Sinclair is not alone in her love of Melbourne. When We Think About Melbourne charts the geography of Melbourne by exploring the historical and cultural significance of its landmarks and suburbs. Each section is accompanied with images and maps, which make for an interactive reading experience.

Sinclair’s interest lies in the way people make sense of their surroundings and come to call a particular area home. She does this through analysing the importance of maps, whether they are grand-scale drawings, something found on Google, or lines scrawled on notepaper. She also explores the potent effects of Melbourne on its artists – from Paul Kelly to Helen Garner – and how their works shape our own view of this ever-evolving city.

Here’re some images from this very visual book; here’s a review by Anson Cameron published in The Age; and here’s the author in conversation with John Faine (in company with Sonia Hartnett and Chopper Read!).

This extract from one of the chapters, City Stories, looks at how novelists have imagined Melbourne and here’s a small part of the rightly famous chapter on the Melway, a cartographic delight. Best of all though is this extract from a glowing review by The Melbourne Urbanist:

One of the observations made by Jenny Sinclair in When we think about Melbourne really strikes a chord with me – just how different the city is when you see it from the saddle of a bicycle. In this extract, she’s just cycled up the middle of St Georges Rd to Reservoir:

Perched on my bike on the track that runs through the park opposite these fine houses, I look down across Preston, Glenroy and to the city, and think: ‘it’s all downhill from here’. When I get home, I felt my sense of the world had expanded a little. Moments like this, of unexpected connection and revelation – I call them ‘surprised by joy’ moments after Wordsworth’s poem – come when we immerse ourselves, when we walk and ride; they are why we should get out of our cars for ourselves, not ‘just’ for the environment or for exercise Read the rest of this entry »


What can be learned from the English riots?

"Remember, if you're arguing on the internet, you've already lost"

A lot of the commentary published in the wake of the English riots earlier this month marvelled at the wide range of views on the underlying causes. But few had much of substance to say themselves that might enhance broader understanding of the fundamental causes of the riots.

I’ve come across three sources that I think actually do have something interesting to say about the riots, or at least offer a different perspective. One is from the new issue of the UK Architect’s Journal; one is a new op ed by urban economist Edward Glaeser; and the third is a study by the Black Training & Enterprise Group in the UK on educational attainment in the British Chinese community.

What the Architect’s Journal says……

The UK Architect’s Journal asked a number of prominent Britons with an interest in design and cities for their views about the recent English riots. Those who responded include Joseph Rykwert, Richard Sennett, Jeremy Till, Alain de Botton and Robert Taverner.

Sennett says the riots were all too predictable – “a generation of poor, young people with no future becomes a tinder box for violence”. Taverner says the riots are a sobering reminder that people make cities – “cities rely on a precarious social balance that can be wrecked by the irresponsible”.

Some implicated the built environment more directly. Rykwert says cities incite riots – “herding people in high-rise reservoirs of social aggression doesn’t help”. Yasman Shariff says there are fundamental problems with urban regeneration schemes – “riots in new generation areas point to the schism where ordinary people cannot afford the new people’s palaces…..it can be little surprise that these regeneration areas are being torched”.

Marianne Mueller, whose practice is involved in assessing regeneration scheme designs, says “spaces for young people and public facilities in general (nurseries, libraries, green open spaces…..) are definitely not a focus in the schemes we have been reviewing over the last few years”.

The response that most struck a chord with me is from Jeremy Till who, perhaps surprisingly for an architect, emphasises the importance of underlying social processes relative to the built environment:

At least the architects are not blamed this time, as we were with Broadwater. Nor could we be, because (quoting Simmel) the city is not a spatial entity with sociological consequences, but a sociological entity that is formed spatially. Here the riots spatialise years of ramping up of social inequality. So when my Twitter feed calls for the reintroduction of Jane Jacobs, I blanch (because space is not the solution, just the symptom) and when the Tories say it is ‘pure’ criminality, I rage (because of the implicit disavowal of their political responsibility).

Very astute, Professor Till.

What Edward Glaeser says………

Harvard urban economist Edward Glaeser has published a short op ed on Bloomberg View in response to the English riots, titled How riots start and how they can be stopped. He reminds us that not all riots are overtly related to a political grievance (e.g. the ice hockey riot in Vancouver earlier this year). He argues there’s a tipping point where the cost of rioting – in terms of the risk of being arrested – gets lower as the number of people participating gets larger:

If I decided to start rioting tomorrow in Harvard Square to express my outrage at the closing of the beloved Curious George children’s bookstore, it’s a pretty good bet that I would be immediately arrested. But if thousands of others were involved, I’d probably get off scot free. The police would be overwhelmed, and my probability of incarceration would fall to zero. Thus, riots occur when the sheer mass of rioters overwhelms law enforcement.

Professor Glaeser also provides some insights on how riots might best be managed. He cites research which compares the Paris riots of 2005 with the Republican Convention in New York in 2004, where the threat of violence was averted. Police arrested only a handful of rioters in Paris, but sought serious criminal penalties. In contrast, the New York police arrested over 1,000 people but eventually let them go:

The New York strategy protected the city; the French strategy wasn’t as effective. The lesson: Light penalties widely applied and serious penalties applied to a few can both deter unlawful behaviour. This is a central conclusion of Gary Becker’s path-breaking economic analysis of crime and punishment. But in the case of riots, it is awfully hard to actually prove wrongdoing and extremely important to clear the streets. Arresting widely and temporarily can be far more effective.

What the Black Training & Enterprise Group says………

The Black Training & Enterprise Group’s study, titled What more can we takeaway from the Chinese community? (that just has to be an unintentional pun!), suggests that common explanations for poor educational performance, like ethnicity and poverty, don’t provide a complete answer. The study, which relied on official statistics from the UK Department of Education, found that 87.5 percent of British Chinese students pass the GCSE whilst their white counterparts manage only 69.6 percent. Further,

Black students from African and Caribbean descent attain a combined 67 percent respectively. Children of Indian heritage are the closest ethnic group in gaining similar levels of attainment but still only manage 82.2 percent exposing a gap of nearly 5.5 percentage points. Read the rest of this entry »


Are parking prices at the airport a rip-off?

Mode share at five largest Australian airports - all users (%)

The new draft report by the Productivity Commission on Economic Regulation of Airport Services has sparked outrage among readers of The Age for its finding that parking fees at Tullamarine are “not a ripoff”. Last time I looked there were 110 comments on The Age Online, virtually every one of them dripping with vitriol.

Whether you’re happy with its conclusions or not, the thing about the Commission is that, relative to The Age’s readers, it’s put a lot of effort into this review, its assembled facts and figures, it’s made its assumptions transparent and its set down its line of reasoning. So far as I can see, none of that is true of the angry and furious readers who commented on The Age’s story.

The Commission examined lots more than parking but I’ve only had a chance to look at the chapter dealing with landside transport. It starts by acknowledging airports have the potential to raise parking prices above competitive levels and to control access to the airport by modes that compete with airport parking. It also notes the ACCC expressed concern the operator of Melbourne Airport seems to restrict entry by off-airport parking operators and private bus operators.

The Commission examined three sources of evidence for the possible existence of monopoly practices i.e. the ability of an airport to use its market power to restrict competition.

It looked first at whether there are effective substitutes for on-airport parking. The availability of alternative means of travel puts a ‘natural’ cap on what airport operators can charge. Hence all forms of transport must be taken into account. For example, at Melbourne Airport, travellers can use a private car (pick up and drop off; on-airport or off-airport parking), catch a taxi, take Skybus from the CBD, or use the 901 orbital SmartBus (which connects the Airport with Broadmeadows rail station) at standard Metlink fares (there are some other private bus operators too).

Off-airport parking is a particularly important substitute for those who drive. As the exhibit shows, this has a much larger role at Melbourne than at other airports. There are 14 private parking operators near the airport, providing 10,000 parking spaces in total. This is half the total number available on-airport. (The Airport operator is also examining a proposal for a new parking area where ‘meeters and greeters’ can wait until summoned by phone by the passenger they’re collecting).

The second issue the Commission addressed is the reasonableness of parking prices, noting that they are made up of a number of components. The obvious one is the cost of building and operating parking facilities (surface parking costs $2,000 per bay, multi-level parking stations $20,000 per bay). The total number needed is determined by peak demand (a few days at Christmas), meaning for most of the time some bays aren’t earning revenue.

Other components are the need to use price as a means of rationing demand (e.g. keeping long-term parkers out of scarcer and more valuable short-term spaces) and, finally, there’s the opportunity cost of the land used for parking – its value in an alternative use. The Commission cites a study of Sydney Airport’s international car park which found the parking charges were lower than the land could earn if developed commercially.

The third piece of evidence is more straightforward. Much as I did in this post 18 months ago, the Commission examined the claim that parking comprises a much larger proportion of Melbourne Airport’s total revenue than it does at other airports. This is taken by some as incontrovertible evidence that Melbourne Airport is engaging in monopolistic pricing.

Melbourne Airport has a lot of parking spaces (20,029). This is double the number of the next largest airport in terms of parking (Perth), so it’s not surprising it earns a lot more revenue from this source than other airports. However, Melbourne earns an average of $12.70 per bay, per day. This is the same as Adelaide ($12.20) but considerably lower than Brisbane ($16.60) and Sydney ($21.50). The importance of parking in Melbourne Airport’s revenue stream is also larger because it has the lowest aeronautical charges per passenger of any of the five airports examined. Read the rest of this entry »


What’s so bad about regional malls?

Waterfront City, Docklands, Melbourne - one of the newer breed of "topless" malls.

I’m always a little surprised by the ill-feeling many planners, architects and educated elites show toward regional managed shopping centres (a.k.a malls). The alternative isn’t always articulated but in most cases seems to be some notion of the traditional strip shopping centre, or ‘High Street’**.

The vast majority of Australians – the 90% plus who live in the suburbs – have pretty clearly voted with their feet for shopping in malls (see herehere, here, here and here). That seems like a rational and inevitable response to the prevailing cost of travel and, relative to strip centres, the considerable advantages of regional malls for a population that’s overwhelmingly car-based. The key advantages are:

One, malls provide complementary shopping – shoppers can buy a diverse range of goods and services from different retailers at a single destination. On one trip, a customer can buy electronics, clothes, furniture, kitchen gadgets, get a haircut, and more.

Two, they provide comparison shopping – buyers can compare the prices of similar products (say shoes) at multiple retailers within the same destination.

Three, economies of scale at the level of the store and the franchise network provide purchasers with lower prices and wider product choice than they could ever hope to get on the High Street.

Four, most regional malls offer a climate-controlled shopping experience irrespective of whether it’s hot, cold or raining outdoors (although enclosure might possibly be of declining importance – newer malls like Waterfront City at Docklands are largely open-air with car-free pedestrian “streets”).

Five, they’re safe. There are no cars within malls, so parents of small children don’t have to worry about road safety. In most, there’s a permanent security guard and centre management presence. Most don’t have pubs or licensed restaurants so there’re fewer drunks.

Six, malls are very sociable. They have indoor ‘streets’ and large food courts. They have cinemas and play areas for small children. They’re meeting places that offer plenty of “buzz” for little cost. Few traditional strip shopping centres have a direct equivalent to the food court because they’re not centrally managed.

Seven, they’re equitable. Prices are competitive – that’s one reason those on average to low incomes like them. Maybe they also like the fact their “relative poverty” isn’t highlighted by the sorts of expensive restaurants and designer shops often found in fashionable strip shopping centres.

Of course there’s no such thing as a perfect solution and malls also have downsides. The most common criticisms I hear are as follows:

One, malls are dull and franchising means “they’re all the same” no matter where you are in Australia. Personally, I don’t find regional malls particularly appealing (although some are better than others), but there’s no getting away from the fact that most people, on balance, prefer them to the High Street. Either it’s a price most people are prepared to pay for the benefits, or most simply don’t see many other malls, or more likely there’re many, many people who actually don’t find them dull.

Two, they turn their back on the street. This criticism misses the essential point of malls – they have their streets within the building and these indoor promenades are often safer, quieter and more congenial that outside streets. Shops blend with the ‘street’ – mall designers have understood the importance of “activation” since the days of Victor Gruen.

It’s true that malls often have blank, windowless facades and are separated from the street network by parking, but this is true of many suburban building types. Suburban universities, schools, hospitals and sports stadia, for example, are commonly set well back from the street and only occasionally directly ‘address’ it. This is a wider urban design issue and there are ways to handle it – it’s by no means peculiar to malls.

Three, malls are blatantly commercial – they’re designed around getting people “to buy”. That’s probably true, but almost every proposal I see to “activate” civic spaces is based on uses like cafes and bars that are, well, commercial operations. Remove the commercial operators from Southbank and see how much life is left. Strip shopping centres too, are places of commerce. Read the rest of this entry »


Is the Auditor-General on-track with cycling?

Bikes of San Francisco - I wish someone had thought to do this for Melbourne

It’s a long time since I’ve read an official report as both extraordinary and disappointing as the report released last week by the Victorian Auditor-General, Developing cycling as a safe and appealing mode of transport.

This effectiveness and efficiency review of the former government’s 2009 Victorian Cycling Strategy is extraordinary because it takes the Brumby government to task for its extravagant claim that the Strategy would “grow cycling into a major form of public transport”, but then failed to put in place the steps the Auditor-General believes are necessary to achieve this ambitious goal.

He makes it clear the sorts of actions he thinks are required are those pursued since the 1970s in countries like Denmark, The Netherlands and Germany where bike’s mode share is now as high as 38% of all trips (but also as low as 3% e.g. Wiesbaden). Those actions include education and promotion, but the key ones are segregating cyclists from cars and making cars slower and less convenient.

As I read the Victorian Cycling Strategy – which is only 20 months old – this sounds like a bit of fit up, but since the Department of Transport has signed off on the Auditor-General’s review, I’ll let that lie.

Governments in Victoria might need to be careful. Judging by this report the Auditor-General seems to be in no mood to tolerate the entrenched practice of blithely setting exaggerated and inflated goals with little real commitment or accountability for realising them. On the other hand, the Baillieu government has “discarded” the Strategy, so perhaps that emboldened the Auditor-General in this particular instance.

Either way, I applaud the Auditor General for his evident intolerance of bullshit (I hope he takes the time to compare some of the purple prose written about public transport against what’s actually being done in practice). Governments should and can do much more to promote cycling. So far there’s lots of lip service but not much action.

But having said that, the Auditor General’s report is also disappointing because its not without its own failings. For a study that cost nearly $400,000, it is a surprisingly lightweight document. I have to hope there’s much more to it, but quite frankly it reads like someone merely got the Department of Transport to run some basic data off VISTA and read Pucher and Buhler’s influential paper, Making cycling irresistible. If there were such a thing as an audit of Auditor-General’s reports, I reckon this one would be found wanting.

I was doubtful of the report’s technical quality from the get-go when I read the claim in the first paragraph that “cycling offers benefits over other forms of transport because it reduces traffic congestion…”. No it doesn’t, no more than building freeways or improving public transport do. What cycling can do is increase the number of people who can get to a destination despite traffic congestion – which is a huge positive – but it won’t reduce congestion.

A key criticism the report makes is the Strategy prioritises inner city work journeys over other trips. Since 78% of car journeys up to 4 kilometres long (and 80% of car journeys between 4 and 10 kilometres) are in middle and outer Melbourne, the Auditor-General reckons the Strategy should have addressed this potential more vigorously. This simplistic view is symptomatic of much of the report. What it fails to recognise is the necessity of prioritising scarce resources like money and political capital. The fact is inner city work trips in the Melbourne of today are more amenable to cycling than suburban shopping trips.

Another shortcoming is the presumption that to grow cycling into a major form of transport we can and should do exactly what successful European cities like Copenhagen have done. But is “a major form of public transport” the 37% of all trips that Groningen has achieved, or the 3% of Wiesbaden? This is the Auditor-General and he’s finding fault with government policy – expecting some measure of precision isn’t unreasonable.

The fact that those cities have much higher bicycle use than Australian or US cities is a very important and pertinent piece of information, but it doesn’t automatically follow that if we do what they’ve done we’ll get the same outcome. In fact it doesn’t even follow that it’s practical, realistic or feasible for us to do what they’ve done.

There’s a long history of assuming what works overseas will work here. For example, in common with many other countries, Australian governments and universities have attempted many times over the last 30 or so years to replicate the success of places like Silicon Valley by establishing technology parks close to universities. Yet every analysis I’ve seen has shown these attempts to be unmitigated flops – at best, we’ve ended up with cookie-cutter business parks rather than the anticipated hotbeds of innovation fuelled by university-business interaction. The fact is places like Silicon Valley are the result of a very special set of circumstances that can’t easily be replicated elsewhere. Read the rest of this entry »


A literary map of Melbourne’s railways?!

Amimation: London rail network - pulse of the city (not 'literary' but interesting nevertheless)

The English cricket writer, Neville Cardus, is famous for bringing a literary sensibility to the hitherto prosaic task of reporting on the game. International cricketer John Arlott said, “before him, cricket was reported … with him it was for the first time appreciated, felt, and imaginatively described”.

British novelist David Mitchell may be the Neville Cardus of the railways (not the very talented comedian of Mitchell & Webb fame – this is the David Mitchell who wrote the incomparable Cloud Atlas). I recently read his first novel, Ghostwritten, and was struck by the richness of the way one of the characters in the novel describes the London Tube:

As the fine denizens of London Town know, each tube line has a distinct personality and range of mood swings. The Victoria Line for example, breezy and reliable. The Jubilee line, the young disappointment of the family, branching out to the suburbs, eternally having extensions planned, twisting around to Greenwich, and back under the river out east somewhere. The District and Circle Line, well, even Death would rather fork out for a taxi if he’s in a hurry……

Docklands Light Railway, the nouveau riche neighbour, with its Prince Regent, West India Quay and its Gallions Reach and its Royal Albert. Stentorian Piccadilly wouldn’t approve of such artyfartyness, and nor would his twin uncle, Bakerloo. Central, the middle-aged cousin, matter-of-fact, direct, no forking off or going the long way round…….

Then you have the Oddball lines, like Shakespeare’s Oddball plays. Pericles, Hammersmith and City, East Verona Line, Titus of Waterloo……

London is a language. I guess all places are.

There’s lots more. The Northern Line “is the psycho of the family”. Kennington Tube Station is the sort of place “where best-forgotten films starring British rock stars as working class anti-heroes are set”.

Makes me wonder how, given some literary license, the essence of Melbourne’s public transport system might be captured. I know if my local station were a country, it would be cold war Russia; if it were a language it would be Pidgin English; and if it were a mental state it would be deeply depressed.

I’m already imagining a “literary map” of Melbourne’s rail network where every station is a novel – I’ll start by renaming Dandenong to Brighton Rock; Collingwood to Power without glory; Northcote to The slap; Parliament to Wolf Hall; Ringwood to The satanic verses; Toorak to Bonfire of the vanities; Eaglemont to Middlemarch;……. Read the rest of this entry »


Have buyers abandoned McMansions (forever)?

It only seems like yesterday we were told Australia had the largest new houses in the world (e.g. see here and here). Now it seems we’ve seen the error of our ways. According to this press report, the head of residential communities at property developer Stockland, Mark Hunter, has no doubt  the era of ever-growing McMansions is over – he expects home sizes to shrink as fast as they grew in the first decade of this century. Mr Hunter is reported as saying three-bedroom, two bathroom houses are the new sweet spot in the market:

With power prices increasing, people want more efficient homes and are happy to sacrifice extra bedrooms, rumpus and media rooms and make do with a single open-plan living and dining area opening onto an outdoor area.

Stephen Albin, the chief executive of the Urban Development Institute of Australia, says the trend to shrinking new home sizes is only just beginning:

I think there’s a massive shift going on and we are at the front end of it. People are starting to realise a five-bedroom house has other costs, from the amount of leisure time you lose maintaining it, to heating and cooling, and you are going to start to find we are at the front end of that shift

He sees a permanent change in Australians’ preferences. “The McMansion’s days are numbered”, he asserts, “just look overseas and see what’s happening”.

In a recent address to CEDA, the CEO of Stockland, Mark Quinn, argued that people are choosing less debt over having five bedrooms and a separate dining room they use once a year at Christmas. People are more patient now, he said, and rather than seek instant gratification they “prefer to wait and have less debt”.

Have Australian fringe buyers really lost their taste for big houses virtually overnight? And is this really a permanent change – is it a “paradigm shift”? Only a few months ago we were debating in these pages home buyers’ preference for seemingly ever-larger dwellings!

I’m hard pressed to see it. Sure, electricity prices – which really could drive a permanent shift toward downsizing – look like they’ll keep rising, but as I’ve pointed out before, there have been massive improvements in the operational energy efficiency of new detached houses over the last ten years. The per capita operating energy required by the average new greenfield dwelling in 2008 was about a third lower than it was in 2000. In fact it was lower than it was in 1960, nearly 50 years earlier, notwithstanding the size of the average new greenfield dwelling more than doubled over this period.

The latest edition of Property consultant Oliver Hume’s Survey of purchaser sentiment in Melbourne’s Growth Areas doesn’t suggest buyers tastes have changed. When the  company asked land buyers what size house they intended to build, the proportion who said greater than 279 sq m was the same in June 2011 (30%) as it was in December 2010 (Oliver Hume say the actual size buyers end up building is about 50 sq m smaller). Read the rest of this entry »


Should replacing level crossings be given higher priority?

Hot wheels metropolis (1200 cars, but no trains)

The Committee for Melbourne has called for a $17.2 billion program to remove all Melbourne’s level crossings over the next 20 years.

The Committee says just two separations of road and rail were constructed by the Kennett government and two by the Bracks/Brumby government. While Melbourne has 172 level crossings, Sydney tackled the issue years ago and now has only eight.

However the Baillieu government has given an undertaking to grade-separate ten crossings at an estimated cost, on average, of around $100 million each. The Committee reckons the private sector could pay a big chunk of the $17.2 billion cost in return for the commercial rights to each site, although the Herald-Sun warns such a move would very likely “be fiercely opposed by anti-development groups”.

There’s a lot to be said for giving a higher priority in the transport capital works program to eliminating level crossings, as they present a number of problems. One is they slow traffic, including buses and trucks. According to the RACV’s public policy manager, Brian Negus, crossings along the Dandenong line are closed for 30-40 minutes an hour during the peak, exacerbating traffic congestion. This is likely to become a bigger problem as the share of public transport trips carried by buses increases. The interaction between crossings and nearby signalled junctions is a major barrier to the efficient performance of the transport network.

Level crossings also impose a limit on the frequency of train services. There are only so many trains that can realistically be sent down a line given each service entails stopping traffic in both directions for well in excess of one minute (in Newcastle, crossings are closed on average for passenger and freight trains for between three and seven minutes!). Some crossings are forecast to carry nearly 40 trains per hour in the peak by 2021.  Another issue is traffic queuing across rail lines — as well as the occasional car/train incident — limits the efficiency of the network. Further, level crossings are a safety hazard for pedestrians and give parents a reason to discourage children from walking to school.

While I’ve not seen an analysis for Melbourne, there’s little doubt the benefit-cost ratio of level crossing elimination would be very high. I expect it would be well ahead of some other much larger transport projects, such as the Avalon, Doncaster or Rowville rail proposals.

There are nevertheless a number of issues raised by this proposal. One is the need to prioritise works – some crossings are relatively minor and simply don’t warrant expenditure in the forseeable future. Probably 80% of the benefits will come from grade separating 20% of crossings. Back in 2009, the Public Transport Users Association argued these ten crossing should be given the highest priority, given their impact on road-based public transport:

  • Bell Street and Munro Street, Coburg (one project) (Smartbus 903)
  • Springvale Road, Springvale (Smartbus 888/889)
  • Bell Street, Cramer Street and Murray Road, Preston (one project) (Smartbus 903)
  • Glen Huntly Road and Neerim Road, Glenhuntly (one project) (Tram 67, and trains subject to speed restrictions)
  • Balcombe Road, Mentone (Smartbus 903)
  • Buckley Street, Essendon (Smartbus 903)
  • Clayton Road, Clayton (Smartbus 703)
  • Burke Road, Gardiner (Tram 72, and trains subject to speed restrictions)
  • Camp Road, Campbellfield (crossing elimination and new station) (proposed Smartbus 902)
  • Glenferrie Road, Kooyong (Tram 16, and trains subject to speed restrictions)

That’s a particular perspective, yet it matches some of the RACV’s priorities. Last year the RACV said the four worst crossings in Melbourne are in High Street near Reservoir station, on Burke Road near Gardiner station in Glen Iris, on Clayton Road next to Clayton station, and Murrumbeena Road near the station. The Dandenong rail corridor also figures high in the RACV’s priorities.

I’m not sure there is as much value in development rights as the Committee for Melbourne imagines. Many level crossings, perhaps most, may not have enough suitable land available for development after meeting grade separation and operational needs. The most promising opportunities are probably where the rail line rather than the road has been lowered, but this can be expensive. Many of those that do have land available may be in locations considered unsuitable for development by planners. And let’s be clear that development in air space over railway lines is a fantasy – it’s simply too expensive in all but an extremely small number of cases. For practical purposes, development in air space is not an option. Read the rest of this entry »


Is Avalon side-tracking Tullamarine rail?

Some famous faces spruiking Avalon Airport to Chinese investors

The Baillieu Government is determined to press on with its election commitment to start construction of the $250 million rail link to Avalon Airport in its first term. The Premier did this nice photo op last week waving-in planes at Avalon.

The Age reporter, Andrew Heasley, took a clever line, asking how the Government could commit to Avalon while spending just $6 million on a feasibility study for a rail line to Melbourne Airport. That produced this bizarre explanation from the State’s Aviation Minister, Gordon Rich-Phillips, who effectively said Avalon is going ahead because it’s easier:

There are challenges around an airport link for Melbourne ……Avalon is a clearer project than Melbourne in terms of the logistics associated with doing it. The reality is.…the lack of development around its [Avalon’s] immediate vicinity makes a lot of those logistics questions at Avalon easier than they are for Melbourne….. We have committed to work at Avalon and we’ve committed to feasibility at Melbourne. We don’t have a project for Melbourne [Airport], we have a feasibility study for Melbourne.

While I admire Mr Rich-Phillip’s unusual and possibly courageous frankness, I can’t see that ease matters more than need. Otherwise we’d build new schools where it’s cheapest rather than where the population is growing. Or the Government would be putting Protective Services Officers in retirement villages rather than on rail stations.

I won’t go into depth about what a silly idea the Avalon rail link is because I discussed it only a few weeks ago (Is the Avalon rail link Baillieu’s folly?). Suffice to say that Melbourne Airport is 22 km from the CBD, is the second busiest airport in the country, and has enormous scope for expansion; Avalon is 55 km away, has just six scheduled flights a day, and has enormous scope for expansion. Even if a rail line were built to Avalon, you’d have to wonder what the frequency, hours of operation and ongoing financial losses would be – it’s got to be sobering that Brisbane Airport’s train stops running at 8pm. I don’t have any problem with Avalon Airport per se, my worry is why taxpayers have to kick in when there are better uses our dollars could be put to.

This fascinating PR video produced to market Avalon to Chinese investors (see exhibit) shows what a cast of famous characters are backing Lindsay Fox’s Avalon venture, from the Prime Minister to the Lord Mayor. I know some gilding of the lily should be expected, but seriously Robert Doyle, how could you say “Avalon is the gateway to Melbourne” with a straight face? And as if, Lindsay Fox, travellers using Avalon could continue to get “on a plane in five minutes” if it really did grow to the size you imagine and hope it will?

What I didn’t know until I viewed the video is the Victorian Government, according to the Premier, has “committed to build a fuel pipeline for jets” to Avalon. This is all on the back of Avalon being “Melbourne’s second international airport”. As I’ve said before, it’s time we were given some explanation for what a second international airport actually means – is it something more than a place for motor racing teams and pop stars to land their cargos once a year? No one is going to seriously believe they’ll transport Ferraris to Albert Park or amplifiers to Rod Laver Arena by rail. What’s the logic behind it? We need a clear explanation – in terms of quantified benefits – of why governments are apparently prepared to spend hundreds of millions on infrastructure for Avalon.

Of course, construction of Avalon rail will have minimal practical effect on the need for a rail link to Melbourne Airport, although it could conceivably have a big effect on whether the Government feels obliged politically to proceed with the latter project. What they both have in common however is that no considered case has yet been made for either one. However The Age’s story – subsequently taken up as fact by these letter writers to the paper – implies that rail to Melbourne Airport is automatically a good idea. It’s certainly an infinitely better idea than rail to Avalon (what wouldn’t be?), but it’s by no means obvious that it’s needed now, as I’ve pointed out a number of times before (see Airports & Aviation in Categories list in the sidepane). Read the rest of this entry »


Book giveaway – ‘1835: The founding of Melbourne’

I’ve got two copies of James Boyce’s new book, 1835: The Founding of Melbourne and the Conquest of Australia (RRP $44.95), to give away to readers of The Melbourne Urbanist thanks to the publisher, Black Inc.

All you have to do is tell me your favourite song that references or evokes Melbourne in some way and you’re in the running. To enter, just follow this link or go to Giveaways in the sidebar under the PAGES menu). Entries close midday, Thursday 25 August.

As usual, the quality of the song you choose doesn’t matter, because the winners will be chosen at random (if you’re stuck, Up There Cazaly will do). Still, it’s nice to show some taste and wit if possible. It would be wonderful to compile a comprehensive anthology of Melbourne-related songs from all eras.

If you’re one of the winners (and the odds are pretty good!), you’ll have to give the publisher, Black Inc., your address and they’ll post your bounty to you direct.

Here’s a summary of the book from the publisher:

In 1835 an illegal squatter camp was established on the banks of the Yarra River. In defiance of authorities in London and Sydney, Tasmanian speculators began sending men and sheep across Bass Strait – and so changed the shape of Australian history. Before the founding of Melbourne, British settlement on the mainland amounted to a few pinpoints on a map. Ten years later, it had become a sea of red.

In 1835 James Boyce brings this pivotal moment to life. He traces the power plays in Hobart, Sydney and London, the key personalities of Melbourne’s early days, and the haunting questions raised by what happened when the land was opened up. He conjures up the Australian frontier – its complexity, its rawness and the way its legacy is still with us today.

Here’s a review by Mark Rubbo from Readings. Here’s an interview with James Boyce that appeared in the Herald Sun and another he did on ABC Radio National’s Late Night Live.

And to whet your appetite, here from the author himself is a dozen things you may not have known about the founding of Melbourne: Read the rest of this entry »


Links for urbanists No. 2

Assorted links to some of the useful, the informative, the interesting, and sometimes even the slightly weird sources I stumble across from time-to-time:

  1. A free copy of Sophie Cunningham’s new book, Melbourne, is up for grabs at The Melbourne Urbanist (hey, that’s here!). Entries close on Saturday,13 August, at midday. Virtually no effort involved, just enter. Damn good odds too!
  2. 18% of streets in London (2,800 km) have a 20 mph max speed limit. That’s 32 kph. The trend is upwards.
  3. World parking rates – Sydney and Melbourne are towards the top of the pile.
  4. The Washington DC Metro Authority is shortening unwieldy station names. They’re also looking at naming stations after landmarks only if they’re within walking distance. At present, some stations are more than an hour’s walk from the destination they’re named after.
  5. Cyclists can now run red lights legally in Virginia. Maryland is looking at a law which would allow cyclists to occupy a full lane of traffic. Conditions apply.
  6. Classic bicycle designs of the last century. Love the Eddie Merckx Corsa Extra Special Edition from 1990. Love those thin steel frames – can’t help feeling bike aesthetics have gone downhill since the advent of carbon.
  7. If we’re talking cycling we’re talking Cadel – Chiara Passerini.
  8. Mel Campbell praises the virtues of big box and superstore shopping. The chief virtue of Borders was its size and banality – the feeling that nobody is watching you. “I’ve felt scrutinised by staff in smaller bookstores”, she says.
  9. Kay Hymowitz explains why in the USA the gender pay gap will never go away. Ever. It’s got  more to do with being a mother than with being discriminated against, she says.
  10. Why are uncles weird?
  11. The amazing architecture of Yemen. And who knew Yemen has over two hundred islands? Judging by these pictures, there might be more islands than trees.
  12. A history of Melbourne’s Green Wedges, from Peninsula Inc.
  13. The mathematics of cities, by Geoffrey West.
  14. Is it time to retire Jane Jacob’s vision of the city? A review of Edward Glaeser’s Triumph of the City.
  15. Glaeser reviews Anthony Flint’s book, Wrestling with Moses: how Jane Jacobs took on New York’s master builder and transformed the American city. The book is a couple of years old now but this has always been one of the most fascinating stories about cities
  16. A crash course in the potential of driverless cars.
  17. The New Urbanist playlist. Songs that evoke the spirit of new urbanism.
  18. Sprawl’s greatest hits. A history of urban protest songs. There’re a dozen more nominations in the Comments, including Ben Folds, Rockin’ the Suburbs; Storyhill, Paradise Lost;  Descendents, Suburban Home;  REM, Don’t go back to Rockville; and The Eagles, Last Resort. I’d add WA’s Dave Warner’s from the Suburbs for Just a Suburban Boy.
  19. What are the best Green Books? Cambridge academics have compiled a list of their top 50 books on sustainability. Embarrassingly, I’ve only read Collapse, Natural Capitalism and An Inconvenient Truth.

What causes urban riots?

Location of verified riots, up to 6.00am 9 August 2011

British leftie, Brendan O’Neill, takes an unsympathetic view of the UK rioters in this article, London’s burning: a mob made by the welfare state. He dismisses popular explanations like racism, characterising the rioters as “welfare-state mobs” who are destroying their own communities.

Painting these riots as some kind of action replay of historic political streetfights against capitalist bosses or racist cops might allow armchair radicals to get their intellectual rocks off, as they lift their noses from dusty tomes about the Levellers or the Suffragettes and fantasise that a political upheaval of equal worth is now occurring outside their windows. But such shameless projection misses what is new and peculiar and deeply worrying about these riots. The political context is not the cuts agenda or racist policing – it is the welfare state, which, it is now clear, has nurtured a new generation that has absolutely no sense of community spirit or social solidarity.

Harvard economist Edward Glaeser (author of my last book giveaway, Triumph of the City) has a long interest in the causes and consequences of urban violence. In this paper, The Los Angeles riot and the politics of unrest, Professor Glaeser and colleague Denise DiPasquale examined the tragic history of post-war riots in the US (H/T Christian Dimmer, @remmid).

The LA riot of 1992 – sparked by the police beating of Rodney King – lasted three days and resulted in 52 deaths, 2,499 injuries, 6,559 arrests, 377 buildings completely destroyed and 222 seriously damaged. Seventeen people died and 400 were arrested in the two-day Miami riot in 1980. In 1965, a six-day riot in Watts resulted in 34 deaths, 1,032 injuries and 800 buildings damaged or destroyed.

DiPasquale and Glaeser examined the causes of rioting using international data, evidence from the race riots of the 1960s in the US, and Census data on Los Angeles, 1990. Their empirical results suggest high levels of ethnic diversity and unemployment among young black men, combined with the “sheer size” of LA, all help to explain the 1992 riot.

However they found little support for the notion that poverty is a major determinant of which cities riot. Nor did they find a connection between high levels of migration – a proxy for social capital – and rioting. They conclude that rioting is driven to some extent by the probability and size of punishment. An increase in the probability of arrest, they say, lessens the probability of a riot and its size. Individual costs and benefits matter.

We find some support for the notions that the opportunity cost of time and the potential cost of punishment influence the incidence and intensity of riots. Beyond these individual costs and benefits, community structure matters. In our results, ethnic diversity seems a significant determinant of rioting, while we find little evidence that poverty in the community matters.

Brendan O’Neill says the intrusion of the welfare state in the UK over the past 30 years “has pushed aside older ideals of self-reliance and community spirit”. The most striking thing about the rioters, he says, is how little they seem to care for their own communities – the violence is not political, but merely criminal: Read the rest of this entry »


Will the price of jet fuel go stratospheric?

Comparison of air fares and HSR fares used in the patronage demand forecasting modelling (one-way). NOTE: The clue to understanding this graph is the blue curve is business fares and the grey one is non-business fares

Ultimately, the bottom line in discussions about the warrant for High Speed Rail (HSR) always seems to come down to proponents’ certainty that the price of jet fuel will go stratospheric.

HSR won’t save time, won’t reduce fares, won’t increase economic activity, won’t promote decentralisation and is an extraordinarily expensive way to reduce carbon emissions – but if at the end of the day the cost of jet fuel means flying becomes ridiculously expensive, then, the argument goes, HSR is the only way of filling the breach.

There are a number of points to consider about this sort of scenario.

One is that while fuel is a significant part of the cost of flying, it’s not the whole story. At present, fuel comprises around a third of airline operating expenses, up from about 15% ten years ago. So a doubling in fuel costs will have a big impact, but it isn’t going to double fares – that would require fuel to quadruple in price (and other costs to remain constant).

Airlines could respond to higher fuel prices by finding ways to reduce their consumption of jet fuel. Aviation expert Ben Sandilands reckons “by 2036….jet fuel is realistically predicted to be at least 50% derived from algal or biological fuel substitutes….”. Others like Robert Merkel are not as convinced of the prospects for biofuels on the scale required. There’re plenty of “out there” proposals for alternative fuels and technologies (e.g. here and here) but they all look pretty speculative.

I don’t think alternative fuels have much potential at this stage but there’re better prospects in using jet fuel more efficiently. Although commercial jet aircraft speeds haven’t increased a lot over the last 40 years, the Aviation Green Paper says modern aircraft are 70% more fuel-efficient than they were in the late 1960s.

The current average fuel consumption of the world’s jet aircraft fleet is around 5 litres per 100 Revenue Passenger Kilometres (RPK), but this will improve as larger, more modern aircraft come into service. For example, a fully laden A380 consumes 3 litres per RPK and the new Boeing Dreamliner is claimed to be even better. Of course this is a mature technology so it’s unlikely historical efficiency gains can be carried forward at the same rate.

However not all experts expect fuel prices to go sky high. The Federal Government’s new High Speed Rail Study – Phase One report assumes both air and HSR fares will reduce by three per cent in real terms by 2015 and remain constant thereafter. Road vehicle operating costs on the other hand are assumed to increase in real terms by eight per cent to 2036 and by a further four per cent to 2056. None of this suggests the apocalypse is nigh.

There’s very little in the report elaborating on these assumptions but it’s as well to remember that the peak oil hypothesis does not mean an immediate end to oil production. Rather, as John Quiggin says, it means a gradual decline over 100 years or more (international oil production has been stable for the last seven years). Read the rest of this entry »


Are planning regulations making retailing uncompetitive?

City of Darebin's draft Vision for Northland

I agree with Australia’s retailers and the Productivity Commission that imported internet purchases valued at less than $1,000 should be subject to GST. But I only agree in-principle.

The trouble is, as the Productivity Commission’s report on retailing released last week shows, the administrative effort required to levy the GST would cost more than the tax would raise in revenue.

But the GST is really just a distraction – the underlying malaise of Australia’s retail sector runs far deeper. The Commission says retailers operate under several regulatory regimes that reduce their competitiveness. It nominates three major restrictions which require improvement:

Planning and zoning regulations which are complex, excessively prescriptive and often exclusionary

Trading hours regulations (in some States) which interfere with the industry’s ability to adapt and compete in a more globalised market

Constraints on workplace flexibility such as obstacles to the greater use of enterprise bargaining and the adoption of best practice productivity measures

Retail hasn’t historically been trade-exposed, so it hasn’t had to work hard at being competitive. Up until now, international suppliers have even been able to practice blatant price discrimination. But the internet has changed the game. Consumers can now compare what they’re paying for many products locally with what it costs to import them from overseas markets.

The impact of planning regulations on the viability of domestic retailing is of course of particular interest to The Melbourne Urbanist. The Commission notes that the ability to maintain a competitive and healthy retail sector is vitally dependent on the ability of new retail formats to gain entry to Activity Centres. A number of studies have shown that preventing the development of new retail formats lowers productivity, reduces employment and raises prices to consumers.

The Commission finds a number of barriers to entry, including limits on the size and scope of centres, prescriptive planning requirements and excessive scope for firms to establish local monopolies and maintain them by excluding new entrants, either with the implicit cooperation of planning agencies or through the courts. The Commission recommends that:

Activity Centres should be large enough in terms of total retail floor space and broad enough in terms of allowable uses to facilitate new retail formats locating in existing business zones

Prescriptive planning requirements should be significantly reduced to ensure competition is not needlessly restricted

The impact of new entrants on the viability of existing retail businesses should not be considered at any stage in the rezoning or development assessment process. This issue should only be considered at the strategic planning stage

The focus should shift to “as-of-right” development processes to reduce uncertainty and minimise the scope for gaming of the system by commercial rivals

Courts should be able to award costs against parties who are found to be appealing for non planning reasons

It’s interesting and illuminating to read the Commission’s report and at the same time look at what the City of Darebin is proposing in this report for the future development of Northland, a “hard-top” shopping centre (mall) with nearby “big-box” retail facilities at Preston, about 11 km north of Melbourne’s CBD. The exhibit above shows Council’s proposed vision for the centre and surrounding uses. Read the rest of this entry »


How important are the regions for HSR?

HSR - passenger loadings 2036 (from High Speed Rail Study - Phase One Report)

The exhibit above is one of the ‘money’ graphs from the High Speed Rail study – Phase One report released on Thursday by the Minister for Transport, Anthony Albanese. In my last post, I concentrated on doing a broad but quick response to the report and questioned the wisdom of spending mega dollars on a project that doesn’t reduce either travel times or the cost of travel.

Now I want to start exploring some issues the report raises. One of those is that, up to this point, the focus of the HSR discussion has largely been around travel between major cities, especially Sydney-Canberra-Melbourne, with some residual claims for regional development (see Categories in the side pane for previous posts on HSR).

The Phase One report however shows regional trips are a very large component of the travel forecast on the complete Brisbane to Melbourne HSR network in 2036. In fact regional travellers – those who are journeying between regional areas and one of the major cities – comprise an extraordinary 75% of forecast demand in 2036 (see exhibit). These are the sorts of trips that are almost all currently made by car. A significant proportion are also “induced” trips – in the absence of HSR and the greater accessibility it provides, they wouldn’t otherwise be made.

Only a small proportion of regional trips are for business purposes. The vast majority – 85% – are for private or leisure purposes i.e. to visit friends or relatives, holidays, entertainment, sport, shopping, education, personal or health-related purposes. The study assumes leisure passengers will pay a lower fare than business travellers (who are concentrated on the inter-city services, e.g. Sydney-Melbourne, where they account for 50% of passengers).

Regional trips are also shorter on average (they comprise half of all HSR passenger kilometres), so the contribution of regional travellers to total revenue is much lower than their 75% share of patronage. Even so, as with airlines at present, their contribution is vital.

There are a number of issues raised by the high level of forecast regional patronage. One is that leisure travellers are sensitive to the cost of travel. The study assumes HSR fares are pitched a little lower than air fares, but if this assumption proves optimistic the demand for HSR could be much lower. Unfortunately there’s no estimate provided for regional travellers, but for inter-city travel the study says a 10% increase in fares will reduce patronage by 10%, and vice versa.

In estimating demand, the study compares the cost of travel by HSR between the regions and the major cities against the car, but doesn’t allow for the usefulness of having a car when travelling within the big smoke. HSR will certainly suit people going (say) from Seymour to the MCG – they can drive to their nearest HSR station (they’ll be about 100 km apart in the regions), disembark at Southern Cross and take a local train/tram combination to get to the G. If however they’re not going to the city centre – perhaps they’re attending a wedding, a party or staying overnight with one of the 90% of the population who lives more than 5 km from the CBD – they might prefer the convenience of having a car for travel within Melbourne.

The car will be a more attractive option the closer regional residents live to the city, although anyone familiar with Canberra will know of the large numbers of young people who commonly drive to Sydney on weekends. Another thing to note is car occupancy for leisure travel is much higher than it is for commuting (where solo driving predominates). Two people travelling (say) to Sydney from Gosford for a concert would pay $26 each per one-way trip on HSR i.e. a combined total of $104 to get to and from Central station. Once the novelty of HSR has subsided, driving could be a more attractive alternative for many.

The big issue to my mind though is just why we as a society would want to spend so much money to improve the leisure travel options of regional populations living along Australia’s east coast. Doubtless they deserve it and would appreciate it, but they already have pretty reasonable travel choices. Last time I drove the Hume Highway from Sydney to Melbourne (about five years ago) it was divided carriageway practically all the way. Large centres like Wagga Wagga and Albury-Wodonga have pretty good air connections to Sydney and Melbourne. There’s already (an admittedly slowish) train service connecting Brisbane, Sydney and Melbourne. Read the rest of this entry »